Suraksha Group has secured Rs.3000 crore loan facility to complete 20,000 Flats of Jaypee Infratech in Delhi NCR
Suraksha Group has taken significant steps to complete around 20,000 unfinished flats in the Delhi NCR region after acquiring Jaypee Infratech Ltd (JIL) through an insolvency process. As part of this effort, the group has infused ₹250 crore into JIL and secured a ₹3,000 crore loan facility to ensure the completion of various stalled projects.
Financial Boost for Jaypee Infratech
After taking control of JIL in early June 2024, Suraksha Group injected ₹250 crore as a combination of equity and debt into the company. This, along with the ₹1,000 crore already present in JIL’s balance sheet from real estate sales and toll income from the Yamuna Expressway (which connects Greater Noida and Agra), brings the total available funds to ₹1,250 crore. Additionally, Suraksha Group has arranged a ₹3,000 crore credit line to prevent any shortage of funds needed to finish the pending projects.
Investment Plans and Project Status
According to sources, Suraksha Group will need to invest between ₹6,500-7,000 crore to complete nearly 160 residential towers across various projects. Before Suraksha’s acquisition, construction was active on only 62 towers, while work on 97 towers had been completely stalled. The group has since ramped up construction on the active sites and is seeking completion certificates for buildings that are finished.
For the 97 stalled towers, contracts have already been awarded for the construction of 41 towers, with plans to issue work orders for the remaining 56 towers soon. Full-scale construction activities are expected to be underway by October 2024.
Background: The Acquisition and Insolvency Process
Suraksha Group took over Jaypee Infratech on June 4, 2024, following a decision by the National Company Law Appellate Tribunal (NCLAT) on May 24, 2024. This decision upheld Suraksha’s bid to acquire JIL, which was initially approved by the National Company Law Tribunal (NCLT) in March 2023. The takeover aimed to prevent further delays in implementing the resolution plan and to address the concerns of all stakeholders involved.
To ensure effective management, Suraksha Group has formed a new board for JIL, appointing Sudhir V. Valia as a Non-Executive Director, Aalok Champak Dave as an Executive Director, and Usha Anil Kadam as an Independent Director.
Compensation and Legal Proceedings
As part of the resolution, the NCLAT directed Suraksha Group to pay an additional ₹1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) for compensating farmers. However, YEIDA has appealed to the Supreme Court, seeking higher compensation.
The corporate insolvency resolution process for JIL began in August 2017, triggered by a consortium led by IDBI Bank. After several rounds of bidding and legal challenges, Suraksha Group emerged as the winning bidder in 2021, securing 98.66% of the votes from the Committee of Creditors (CoC), which included 12 banks and over 20,000 homebuyers.
Future Outlook
Suraksha Group’s commitment to completing all stalled projects over the next four years marks a new chapter for Jaypee Infratech and its stakeholders. With significant financial backing and a clear roadmap, the group aims to fulfill the long-awaited dreams of thousands of homebuyers in the Delhi NCR region. The investment and ongoing construction efforts signal a positive step towards resolving one of India’s largest real estate challenges, restoring faith in the market, and delivering homes to those who have been waiting for years.
